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Ahhh, statistics, got to love them. They count any health issue a smoker has as smoking related. In 2008 Australia spent ~$100b on health. In 2008, 23% of men and 19% of women smoked. So basically, a slightly higher spend on smokers, just statistically significant but easily covered by the excise they paid. Possibly more interesting though is that health expenditure has increased ~5% in real terms every year since '98. Over the same timeframe, numbers of smokers has been consistently dropping...
The reality is nicely shown by my family. Two uncles, both smoked, one dropped dead without warning in his 50's and one died within about 6 months of a cancer verdict in his early sixties. Three grandparents never smoked, all lived well into their nineties, ten years past their minds, drawing pensions for 30 years and consuming handfuls of prescribed pills a day on the pharmaceutical benefits scheme. Who had the bigger impact on the health system then...?